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I'm trying do improve my credit score. I have one charge off account. I'm in the process of trying to do a lump sum settlement. Which would result in them reporting my account as paid in full and removing any negative important. How long would it take for my score to improve..
Hi Hogc
Normally, a charge off listing can lower your credit score by as much as 100 points. Even if the credit report lists it as "paid in full" after you pay back the debt, it will not improve your credit score. But if you don't pay it back, the creditor can bring judgment against you to recover the debt. So it is always better to pay it off. However, before you pay it off, you should try and make the collection agency agree to list the charge off listing as "paid as agreed" instead of "paid in full". This "paid as agreed" listing may help you to improve your credit score.
Generally, the impact of the charge off listing on your credit score starts reducing from the time the Statute of Limitation in your state gets expired. However, the listing will stay in your report as negative for seven years as said by Justin. Now, if you want to improve your credit score, all you need to do is to repay back new debts on time and build up a good repayment history. You can make purchases or make utility bill payments with your credit cards, and make timely repayments to build up a good credit history
How long will it take for result of my credit score
Nobody know...... tipycally credit report agency they have their own formula to determined your score. Justin sorry but your are wrong.
Paying off old debt
How the account impacts you depends on the other accounts on your credit report as well. One late payment can lower you 70 points, but in someone elses case it may just be 20. It just depends.
If you want to pay off your debt and get it off your report you can. It doesn't need to be just reported as paid. You can negotiate with them.
debt
What if the debt goes to a CA? Is it better to try to pay your debt with the OC or the CA? Would it 'look better', on your CR if you have it paid in full by the OC?